The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first securities depository in India. NSDL promoted by institutions of   national stature responsible for economic development of the country has since established a national infrastructure of international standards with custody value in   excess of Rs.60 lacs crores and facilitates settlement of more than 80% of securities traded in the Indian capital market.

  Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the   safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet   but central role in developing products and services that will continue to nurture the growing needs of the financial services industry

  In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of   securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost   of transacting in a depository environment is considerably lower as compared to transacting in certificates.